Corporate social responsibility decisions: a dilemma for SME executives?

This study aims to examine the factors that move the decision‐makers in small businesses to expend company resources for corporate social responsibility (CSR) activities.

This qualitative phenomenological study used a Van Kaam method as modified by Moustakas with in‐depth, semi‐structured interviews to explore the factors and priorities considered by SME executives in CSR decisions.

The study revealed that small business executives are generally influenced by personal feelings, financial conditions, friends and family, and religion in making decisions on CSR activities. In addition, these decision‐makers prefer local CSR activities, are concerned with the environment, and go beyond the basic legal requirements. The sole focus on profits was not evident in these small business executives.

The results imply that small business management does not rely simply on the analytical but on the relational and emotional. Management theories for small businesses may need to include the factors such as local community, personal feelings and religion as determining the direction of overall decision‐making in the small business community. This study is also significant to leadership in that it identifies factors that influence the decision process in small businesses.

The results of this study may open new discussions and lead to the development of new theories on leadership and management in small businesses.